OM Coin Plunges 90% as Whale Withdrawals Trigger Panic

On the night of April 14, OM Coin experienced a dramatic plunge, with its value dropping nearly 90% from $5.75 to $0.37. This sudden decline resulted in the evaporation of over $5.5 billion in market value. The catalyst for this dramatic fall was a series of withdrawals by a whale, who, over the course of four days, withdrew 61.52 million OM from Binance through 19 new wallets. This amount represented 3.4% of the total supply of OM Coin, which triggered widespread panic among investors. The two largest withdrawals were 2.64 million OM each, totaling over $21 million.

Adding to the turmoil, MantraDAO faced scrutiny over the token's unlimited inflation, which significantly diluted its value. The limited number of validating nodes also raised concerns about high centralization risks, further eroding market confidence. This loss of confidence led to a massive sell-off and large-scale long liquidations, exacerbating the decline in OM Coin's value.

In response to these events, Bitunix analysts issued a recommendation to investors. They highlighted the significant risks associated with the project's fundamentals, noting that the team's reputation and tokenomics flaws remained unaddressed. The analysts advised investors to remain vigilant, exercise risk management, and avoid chasing highs or heavily investing in a single high-risk token. They emphasized the importance of keeping a close eye on the $0.40 support level, as it could be crucial in determining the coin's future trajectory.